A single HVAC replacement can cost between $5,000 and $12,500, while a water heater failure often runs $1,200 to $2,500. For homeowners without a financial cushion, these unexpected breakdowns can be devastating. A home warranty provides a safety net, covering repair or replacement costs for your major systems and appliances when they fail from normal wear and tear.
We analyzed seven of the top home warranty providers, comparing their coverage, costs, service fees, and customer service reputations. Our research considered contract terms, payout limits, industry certifications, and real-world customer experiences to help you find the right protection for your home and budget.
Key Takeaways
- Home warranty plans typically cost $30 to $70 per month, plus a service fee of $75 to $125 per claim—far less than paying $5,000 or more out-of-pocket for a major repair.
- The U.S. home warranty industry reached $4.6 billion in 2024, with approximately 5% of American households currently holding coverage.
- Most providers offer three plan types: appliance-only, systems-only, and combination plans that cover both.
- All home warranties have a waiting period (typically 30 days) before coverage begins, and pre-existing conditions are generally excluded.
- The best value often comes from combination plans, which protect both your HVAC, plumbing, and electrical systems and your major kitchen and laundry appliances.
Table of Contents
- Key Takeaways
- How We Evaluated Home Warranty Companies
- 1. American Home Shield: Best Overall
- 2. Select Home Warranty: Best for Budget-Conscious Homeowners
- 3. Liberty Home Guard: Best Add-On Options
- 4. First American Home Warranty: Best for Older Homes
- 5. AFC Home Club: Best for Choosing Your Own Contractor
- 6. Cinch Home Services: Best Workmanship Guarantee
- 7. 2-10 Home Buyers Warranty: Best for Real Estate Transactions
- What Is a Home Warranty?
- How Much Does a Home Warranty Cost?
- Home Warranty vs. Home Insurance
- How to Choose the Best Home Warranty
- Frequently Asked Questions
- The Bottom Line
How We Evaluated Home Warranty Companies
Our methodology focused on four primary factors to identify the best home warranty providers:
Coverage and Transparency: We reviewed each company’s sample contracts to understand exactly what systems and appliances are covered, along with any exclusions or limitations. We favored companies that clearly explain their coverage caps and payout limits upfront.
Cost and Value: We compared monthly premiums, service fees, and coverage limits to assess overall value. The cheapest plan isn’t always the best deal if the service fee is high or the coverage caps are low.
Claims Process: We evaluated how easy it is to file a claim, including available channels (phone, online, app) and typical response times. Companies offering 24/7 claims processing scored higher.
Reputation and Customer Service: We checked Better Business Bureau ratings, reviewed customer feedback, and verified industry affiliations such as membership in the National Home Service Contract Association (NHSCA).
1. American Home Shield: Best Overall
Why we chose it: American Home Shield has over 50 years of experience and serves more than 2 million members, making it the largest home warranty provider in the country. Their plans cover a wide range of systems and appliances without age restrictions, and their ShieldPlatinum plan includes valuable extras like HVAC tune-ups and roof leak coverage.
Pros:
- Industry-leading coverage with no age limits on systems or appliances
- Flexible service fee options ($100 or $125) that let you adjust your monthly premium
- ShieldPlatinum includes roof leak coverage up to $1,500 and free seasonal HVAC tune-ups
- Covers pre-existing conditions that were unknown at the time of purchase
Cons:
- Only 30-day repair guarantee, shorter than some competitors
- Not available in Alaska, Hawaii, or New York City
- Higher monthly premiums compared to budget providers
Plans and pricing: American Home Shield offers three plans. ShieldSilver covers 14 major home systems including HVAC, plumbing, and electrical. ShieldGold adds coverage for 9 essential appliances like your refrigerator, washer, and dryer. ShieldPlatinum provides the most comprehensive coverage, including everything in the lower tiers plus higher coverage limits, roof leak repair, and annual HVAC tune-ups.
Best for: Homeowners who want comprehensive coverage from an established provider and are willing to pay a bit more for extensive protection and flexible options.
Get a quote from American Home Shield →
2. Select Home Warranty: Best for Budget-Conscious Homeowners
Why we chose it: Select Home Warranty delivers solid coverage at lower prices than most competitors. They’re one of the few providers that includes free roof leak coverage with every plan, and they frequently offer promotions like two free months when you pay annually.
Pros:
- Lower monthly premiums than most competitors
- Free roof leak coverage included with all plans
- Single $75 service fee keeps out-of-pocket costs predictable
- Multi-year discounts available for additional savings
Cons:
- Lower coverage caps than some competitors
- Not available in Iowa, Nevada, Washington, or Wisconsin
- 90-day workmanship guarantee is average for the industry
Plans and pricing: Select offers three plans. Bronze Care covers major appliances including your refrigerator, oven, dishwasher, and laundry machines. Gold Care focuses on home systems like air conditioning, heating, plumbing, and electrical. Platinum Care combines both for comprehensive whole-home protection.
Best for: Budget-conscious homeowners who want reliable coverage without paying premium prices, especially those who value included roof leak protection.
Get a quote from Select Home Warranty →
3. Liberty Home Guard: Best Add-On Options
Why we chose it: Liberty Home Guard offers more than 40 add-on coverage options, giving homeowners exceptional flexibility to customize their protection. From pools and spas to pest control and gutter cleaning, you can build a plan that precisely fits your property’s needs.
Pros:
- Industry-leading selection of add-on coverage options (40+)
- 60-day workmanship guarantee on repairs
- 24/7 claims processing with fast response times
- Available in all 50 states
Cons:
- Coverage caps of $2,000 per item are lower than some competitors
- Add-on costs can increase your total premium significantly
- Not BBB accredited at time of publication
Plans and pricing: Liberty Home Guard offers Appliance Guard, Systems Guard, and Total Home Guard plans. Service fees range from $75 to $125 depending on your preference. The extensive add-on menu includes coverage for well pumps, sump pumps, central vacuums, septic system pumping, and specialty items rarely covered by competitors.
Best for: Homeowners with unique or specialized systems who need customizable coverage beyond standard plans, particularly those with pools, wells, or septic systems.
4. First American Home Warranty: Best for Older Homes
Why we chose it: Since 1984, First American has built a reputation for straightforward plans that cover issues common in older homes. Their First Class Upgrade add-on covers costs related to building code violations and improper installations—problems frequently discovered in homes that have been around for decades.
Pros:
- Covers damages from lack of maintenance, rust, corrosion, and sediment buildup
- First Class Upgrade covers code violations and improper installations
- Premium plan covers all refrigerant costs, including recapture and disposal
- Simple plan structure that’s easy to understand
Cons:
- No systems-only plan available
- Limited add-on options compared to competitors
- Not available in 15 states including Connecticut, Illinois, and Michigan
Plans and pricing: First American keeps it simple with three plans: Starter, Essential, and Premium. The Starter Plan covers nine major systems and appliances. The Essential and Premium plans expand coverage and include benefits for code violations and full refrigerant costs. Service fees range from $75 to $125.
Best for: Owners of older homes who need coverage for maintenance-related issues and potential code violations that other companies often exclude.
Get a quote from First American Home Warranty →
5. AFC Home Club: Best for Choosing Your Own Contractor
Why we chose it: AFC Home Club (America’s First Choice) stands out by allowing you to choose your own licensed contractor for repairs—a feature rarely offered in the industry. They also provide unique benefits like complimentary credit monitoring and identity theft protection with their plans.
Pros:
- Freedom to use your own trusted contractor for repairs
- Parts and labor guaranteed for the life of the contract
- Includes credit monitoring and identity theft protection
- Multi-year plan options that lock in your rate
Cons:
- $75 cancellation fee if you terminate early
- Must report issues within one day of discovery
- Not available in California, Hawaii, or Washington
Plans and pricing: AFC offers four plans: Silver (systems only), Gold (appliances only), Platinum (combination), and Platinum Plus (most comprehensive). Service fees are $75, $100, or $125, with lower fees resulting in higher monthly premiums. Their lifetime parts and labor guarantee is one of the strongest in the industry.
Best for: Homeowners who have established relationships with local contractors and want the flexibility to continue using trusted professionals for repairs.
6. Cinch Home Services: Best Workmanship Guarantee
Why we chose it: Cinch offers a 180-day workmanship guarantee—one of the longest in the industry. If the same problem returns within six months of a repair, they’ll send a technician back at no additional service fee. They also cover unknown pre-existing conditions and include items like sump pumps and smoke detectors that competitors often exclude.
Pros:
- Industry-leading 180-day workmanship guarantee
- Covers unknown pre-existing conditions
- Includes sump pumps, smoke detectors, and tankless water heaters
- User-friendly mobile app and online portal for claims
Cons:
- Higher deductibles ($100 to $150) than some competitors
- Add-on options only available during initial quote process
- Not available in Alaska or Hawaii
Plans and pricing: Cinch offers Appliances, Built-in Systems, and Complete Home plans. Their systems plan includes coverage for items like sump pumps, doorbells, and smoke detectors that most competitors don’t cover without an add-on. Service fees range from $100 to $150.
Best for: Homeowners who value long-term repair guarantees and tech-forward service experiences, particularly those with modern smart home systems.
7. 2-10 Home Buyers Warranty: Best for Real Estate Transactions
Why we chose it: With decades of experience in the real estate market, 2-10 HBW specializes in coverage for home buyers and sellers. Their plans can provide coverage during the listing period and seamlessly transfer to the new owner at closing, making the transition into a new home less financially risky.
Pros:
- Specialized coverage designed for real estate transactions
- Supreme plan covers items most competitors exclude, like refrigerant disposal fees
- Appliance Discounts Program with up to 65% off Whirlpool and GE brands
- $100 reimbursement if you choose to replace a broken appliance instead of repairing
Cons:
- No coverage for garage doors or roof leaks in base plans
- Not available in Alaska or Hawaii
- $5 monthly auto-renewal discount requires commitment
Plans and pricing: 2-10 HBW offers Simply Kitchen, Complete Home, and Pinnacle Home plans. Service fees are $65, $85, or $100. Their Service Fee Guarantee refunds your service fee if your request isn’t eligible, and you won’t pay another fee if the same component fails after service.
Best for: Home buyers and sellers who want protection specifically designed for real estate transactions and appreciate perks like appliance discounts.
What Is a Home Warranty?
A home warranty is a service contract that covers the cost of repairing or replacing major home systems and appliances when they break down from normal wear and tear. Unlike homeowners insurance, which protects against damage from fires, storms, or theft, a home warranty addresses the everyday failures that come with owning a home.
When a covered item breaks down, you contact your warranty provider and pay a service fee (typically $75 to $125). The company dispatches a qualified technician from their network to diagnose the problem. If the issue is covered under your contract, the warranty pays for the repair or replacement up to your plan’s coverage limit.
According to ConsumerAffairs, homeowners spent an average of $13,667 on home improvement, maintenance, and emergency repairs in 2023. A home warranty can help smooth out these unpredictable expenses by converting them into a manageable monthly payment plus occasional service fees.
How Much Does a Home Warranty Cost?
Home warranty costs vary based on the level of coverage you choose and your location. Here’s what to expect:
Monthly premiums: Most plans range from $30 to $70 per month, or roughly $360 to $840 annually. Combination plans that cover both systems and appliances typically cost more than single-category plans.
Service fees: Each time you file a claim and a technician visits your home, you’ll pay a service fee (also called a trade call fee or deductible). These typically range from $75 to $150. Choosing a higher service fee usually lowers your monthly premium, and vice versa.
Coverage caps: Most warranties have per-item and per-contract limits on how much they’ll pay. For example, a plan might cover up to $2,000 for any single appliance and $25,000 total per contract year.
To put these costs in perspective, consider what you might pay without coverage:
- HVAC replacement: $5,000 to $12,500 for a new furnace and AC unit
- Water heater replacement: $1,200 to $2,500 for a standard tank unit
- Refrigerator replacement: $1,000 to $3,000 for a mid-range model with installation
- Washing machine repair: $150 to $500 depending on the issue
A home warranty costing $500 per year plus a few service fees can provide significant financial protection against these expenses.
Home Warranty vs. Home Insurance
Home warranties and homeowners insurance serve different purposes, and most homeowners benefit from having both:
Homeowners insurance protects your home’s structure and your belongings from sudden, unexpected events like fires, storms, theft, and vandalism. It also provides liability coverage if someone is injured on your property. Mortgage lenders require homeowners insurance.
Home warranties cover the gradual breakdown of systems and appliances from normal wear and tear. They don’t cover damage from disasters or accidents—just the everyday failures that happen as equipment ages. Home warranties are optional but can provide valuable financial protection.
Think of it this way: if your water heater is destroyed in a house fire, homeowners insurance covers it. If your water heater simply stops working after 12 years of use, your home warranty covers it.
How to Choose the Best Home Warranty
Finding the right home warranty requires balancing coverage, cost, and company reputation. Here’s what to consider:
Assess your coverage needs: Review the age and condition of your major systems and appliances. If your HVAC system is approaching the end of its 15-20 year lifespan, prioritize plans with strong HVAC coverage. If your kitchen appliances are older, look for comprehensive appliance protection.
Compare total costs: Don’t just look at monthly premiums—consider the service fee, coverage caps, and any limitations. A cheaper plan with a $150 service fee and $1,500 coverage caps may cost more in the long run than a pricier plan with a $75 service fee and $3,000 caps.
Read the contract carefully: Before purchasing, review the sample contract to understand exactly what’s covered and what’s excluded. Pay special attention to coverage caps, waiting periods, and any maintenance requirements.
Check company reputation: Look up the provider’s Better Business Bureau rating and read customer reviews. Consider whether the company is a member of industry associations like the NHSCA, which promotes ethical business practices.
Understand the claims process: Find out how to file claims (phone, online, app), typical response times, and whether you can request a specific contractor. Some companies offer 24/7 claims processing, which matters when your AC fails on a summer weekend.
Frequently Asked Questions
Homeowners insurance covers damage from sudden events like fires, storms, and theft. A home warranty covers repair or replacement costs when systems and appliances break down from normal wear and tear. They protect against different risks and work well together.
Most home warranties cost between $30 and $70 per month, plus a service fee of $75 to $150 each time you file a claim. Annual costs typically range from $400 to $900 depending on coverage level and location.
Most home warranty companies cover unknown pre-existing conditions—problems that existed before your coverage started but weren’t apparent. However, issues that were clearly visible or known at the time of purchase are typically excluded. Some companies require that all covered items be in working order when the contract begins.
Most home warranty companies use their own network of pre-screened contractors. However, a few providers like AFC Home Club allow you to choose your own licensed contractor, though you may need prior approval.
A service fee (also called a trade call fee or deductible) is a flat amount you pay when a technician comes to diagnose and repair a covered issue. You pay it once per claim, not per visit. Service fees typically range from $75 to $150.
Most home warranties don’t include roof coverage in their base plans, but many offer it as an add-on. Select Home Warranty is notable for including limited roof leak coverage with all plans at no extra cost.
Most home warranties have a 30-day waiting period before coverage begins. This prevents people from purchasing a warranty only after something breaks. If you’re buying a home and the seller provides a warranty, coverage typically starts on the closing date.
Yes, most companies allow cancellation with a prorated refund, though many charge a cancellation fee of $25 to $75. Review your contract for specific terms, and many providers offer full refunds if you cancel within the first 30 days.
The Bottom Line
A home warranty can provide valuable financial protection against the unpredictable costs of owning a home. When your air conditioner fails in July or your water heater gives out, a warranty means you’re not scrambling to find thousands of dollars for an emergency repair.
The best home warranty for you depends on your specific situation. American Home Shield offers the most comprehensive coverage from an established provider. Select Home Warranty delivers solid protection at budget-friendly prices with included roof coverage. Liberty Home Guard provides unmatched customization options. And First American is ideal for older homes with potential code compliance issues.
Before purchasing, take time to compare plans, read sample contracts, and understand the coverage limits and exclusions. The right home warranty is an investment in peace of mind—knowing that when something breaks, you have a plan in place to fix it without breaking the bank.
